Australian Treasurer Jim Chalmers has warned that Ex-Tropical Cyclone Alfred and Donald Trump’s recent tariffs will put pressure on the federal budget, which is set to be handed down next week.

Chalmers was briefly interrupted by protesters at two times during his speech before they were quickly removed.

A man and a woman held banners reading ‘No new coal and gas’.

“When will the Labor Party stop funding new coal and gas projects?” one asked as security led him away.

“Thank you mate, off you go,” Chalmers said.

He went on to warn that Alfred and Trump together could stall growth, and lead to price increases and lingering inflation.

Chalmers warned that the cost of the cyclone recovery could mean an immediate $1.2 billion hit to the nation’s GDP.

That would push the total amount earmarked in the budget for natural disaster support to $13.5 billion.

“This could wipe one-quarter of a percentage point off quarterly growth,” Chalmers said.

“It could also lead to upward pressure on inflation from building costs to damaged crops raising prices for staples like fruit and vegetables,” he said.

“We don’t yet know the precise cost to our Budget, but again it will be significant.”

Chalmers also said fears of a global trade war and increasing tariffs could dampen Australia’s economic outlook.

“The rules that underpinned global economic engagement for more than 40 years are being rewritten,” he said.

Chalmers said that the direct impact of steel and aluminium tariffs would be manageable for Australia.

“But when you add in the indirect effects, the hit to GDP could be more like 0.1 per cent by 2030,” he said.

“In fact, over a range of scenarios, Treasury found the indirect GDP impacts of a trade war could be up to four times larger than the direct effects of tariffs on our economy.

“In a world of retaliation and escalation, the impacts of tariffs are amplified, they linger for longer, resulting in a bigger reduction in GDP and a bigger increase in prices.”

Despite this Chalmers signalled that reciprocal tarifs against the US will not be on the cards:

“Our response to this will not be a race to the bottom on tariffs.”

Chalmers will hand down the federal budget next Tuesday night on March 25.